The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-07-18
a BIG SPECULATIVE BATTLE.
An Immense Cotton Deal That is
Exciting Some Attention,

Runge, of the firm of Kaufman & Runge,
of Galveston, is the Marshal Blucher of the
German bulls, but whether he will meet
with the same success as his military proto-
type remains to be seen. He is of medium
height, well built, with handsome, regular
features, a struggling light beard
and thoughtful grayish blue
eyes. Seen around the brass-railed pit of
the Cotton Exchange, with its high white
arches and storied windows, he might be
taken for good-looking German peasant
suddenly raised to opulence, though the lat
ter impression might perhaps be modified
somewhat by the high black silk hat which
he wears in midsummer. He was i'll the big
coffee deal which collapsed some time ago
and he made $260,000 He is also under
stood to have been one of the leaders in the
recent June corner in wheat here, whereby
in very short time the price was lifted
from "a cents to $40 per bushel and several
million bushels We're kettled at the highest
point without taking account of the
profits accruing from sales at a lower
range of quotations. In the cotton
deal the bull forces are said to rep
resent SIS, 900, 900, and at one time they are
understood to have held 200,000 bales here
and 100000 in Liverpool. Like the wheat
and coffee speculations, which were started
months ago, the basis of the bull operations
in cotton was the cheapness of the article
and bulliSh statistical exhibit. Mr.. Runge
began to buy cotton in February when it
was very low, and continued to buy through
March He cornered April and ran up the
price 100 points" or equal to lc. pound
or 81 so bale. Then he went on to manip-
ulate the summer months, and pushed up
the market another cent or more, finally
fixing on August as the month to be
squeezed and screwing up the price to &c.
Then the market began to recede, and by
July l, August was down to l1-04c., and
few days ago it touched lO.2lc
amid great excitement, growing out of ru-
mors that the bulls were throwing over
their load. 1t was stated that bulls in Gal
weston and New Orleans were getting out of
the deal as fast as they could, and in two
days it was noticed that the sales of August
cotton were no less than 135, 900 bales. At
one time the visible supply in this country
was more than 200, 900 bales less than at the
same time last year, though the supply in
Europe was larger than on the same date in
1886. just now the supply in New York is
10000 bales less than a year ago, but taking
the consolidated stock or the visible supply
in the United States there is a decrease com
pared with that of last year of only a. 900
bales, while the visible supply in the world
Is IA 65S bales, against ,723, ,97S last year,
or an actual increase at this date of little
over 1000 bales.
Orders to sell have latterly been received
here from all over the South, many small
holders becoming frightened by the break
of 50 points, or 1926 a bale. within a few
days. One of the bear points was the re-
port of the Agricultural Bureau at Wash
ington showing that the condition of the
crop was 81 per cent. against S315 year
ago. The prospects of a big cotton crop, it
is averred, have not been so fattering for
ten years, and this is one of the reasons, it
is asserted, for the selling of long cotton.
A bear in New Orleans sends a despatch
that $4,000 bales of new cotton are expected
there in August, though the cotton year
does not begin till Sept. |. This caused
selling because it was argued that it will be
harder to corner the old crop if the new is
to come to market 50 early. 1t is, of course,
too early to make predictions as to the size
of the next crop, but some of the more san
guine bears believe that it will be unprece-
dented To show, however, how little reli-
ance may be placed on the predictions of
either bull or bear prophets, it may be
stated that the estimate of the next crop
range from 800, 600 to 5000, 900 bales. The
biggest crop on record was that of 1888,
when it reached {, 6,950,000 bales.
Among the bulls is Solomon Ranger once
known as the Napoleon of the New York
cotton trade. He lost very heavily by the
failure of his brother Morris Ranger, in
Liverpool, some years ago, but in this cam
paign he is said to have been singularly sue
cessful He is a born leader in speculation,
and is once more power in the New York
market. He is at the head of the American
Cotton Company here. He is short, thick
set, stolid, good-natured and popular. He
is a German of Hebrew birth, though with
out the facial characteristics of his ancient
race He is q man who could stand up in
the cotton ring and lose the whole of his
fortune and never move muscle. He is at
once cool, prudent and courageous
Whether he has acted independently
as free lance in the deal or has
joined forces with the other German
houses are questions of dispute
Other bulls among the German houses are
Walter & Fatman, S. Gruner d Co., and
Mohr, Haneman q Co. Mr. Gruner was
formerly President of the Cotton Exchange,
and Vice President of the Coffee Exchange
He made fortue in the big bull deal in
coffee some time ago, and also squeezed the
June shorts in wheat here, engineering that
deal, it is stated, for Mr.. Runge and his
Galveston friends He is stout, ruddy com
plexioned and jolly, a member of all the
German clubs here, socially inclined and
very popular. MohT, of Mohr, Haneman
g. Co, is tall, sparely built, with grayish
side whiskers, and the German gray eyes.
He looks like Hohenzollcrn or a Haps-
burg or German Baron at least. At the
decline the big export houses here have
bought the actual cotton freely. Ralli
Brothers, Fackeri & Co., and other Greek
firms being especially prominent in
the buying. Greek houses are very
important members of the trade here.
Rail- Brothers, for instance, have
capital of about Rl2,0O0.O00 ster-
ling and have houses all over Europe as
well Us this country, and their annual pur-
chases of cotton in this market alone reach, ,
il is stated, some 100000 bales annually.
The house has always been as invincible as
the Greeks of old at Salamis. American
mills are now buying more freely. They
were shut out by the high prices. In Eng
land movement was at one time started to
boycott American cotton because of the cor
ner. There are many conflicting opinions
as to the future action Of the clique. It's
members were in some cases at one time
identified with the big Chicago wheat deal,
and some of the wheat people in Chicago
and ST. Louis are Interested in the cotton
deal Some think the clique has sold very
largely, others that only the ''tailors" have
sold TO anv large extent Others that the
clique will hold on and squeeze August
shorts, and still others that the bull phalanx
will watch its opportunity and get out with
as little loss and as soon as possible.
OSCAR WLLoUGHBY RIGGS.
The failure of the house Of Kaufman &S
Runge was announced in our dispatches
yesterday morning.
VIII Force Him to Decline.
LONDON, July IA dispatch from st.